Deutsche Cuts Price Target on RadioShack (RSH) by 30% Following Preliminary Results
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Price: $0.24 --0%
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
0 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Following the release of preliminary Q4 results, Deutsche Bank is maintaining its Hold rating on shares of RadioShack Corp. (NYSE: RSH), but is reducing its price target from $10 to $7.
The firm highlights same-store-sales and revenues were projected to be higher than the Street's consensus while earnings are expected to half to one third of the Street's and firm's estimates. Management noted gross margin looks to fall 6 percent year over year to 35 percent.
Management blamed the substantial miss on Sprint’s (NYSE: S) post paid business. The company noted fewer net new customers and fewer hardware upgrades were do the changes in Sprint’s credit model and customer profile.
Radio Shack also announced it was suspending its $200 million buyback plan in an effort to reinvest in the company. Deutsche doesn't anticipate the company will lower or terminate its $0.50 per share annual dividend.
For Q4 and FY11, the firm forecasts EPS of $0.11 and $0.94 now. Deutsche also lowered its FY12 EPS estimate from $1.27 to $0.82.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Shares of RadioShack Corp. closed at $10.23 yesterday.
The firm highlights same-store-sales and revenues were projected to be higher than the Street's consensus while earnings are expected to half to one third of the Street's and firm's estimates. Management noted gross margin looks to fall 6 percent year over year to 35 percent.
Management blamed the substantial miss on Sprint’s (NYSE: S) post paid business. The company noted fewer net new customers and fewer hardware upgrades were do the changes in Sprint’s credit model and customer profile.
Radio Shack also announced it was suspending its $200 million buyback plan in an effort to reinvest in the company. Deutsche doesn't anticipate the company will lower or terminate its $0.50 per share annual dividend.
For Q4 and FY11, the firm forecasts EPS of $0.11 and $0.94 now. Deutsche also lowered its FY12 EPS estimate from $1.27 to $0.82.
For an analyst ratings summary and ratings history on RadioShack Corp. click here. For more ratings news on RadioShack Corp. click here.
Shares of RadioShack Corp. closed at $10.23 yesterday.
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